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NewsMicrosoft and UK-based Tesco Team Up on Virtual DVD Service

Microsoft announced Wednesday it will work in tandem with the largest British retail chain, Tesco, to offer DVD-like features with digitally downloaded movies as part of a new “virtual DVD” service. The service is scheduled to debut in the UK sometime this fall. The ingenious plan is to let British customers download special digital copies of “certain home video titles” bought from Tesco.

These special downloadable copies will include interactive content and bonus material, both of which are usually associated with movies distributed on physical media. To boot, the downloadable versions will also provide some network-dependant features, including auto-updated trailers, games, ringtones, MP3s, and movie viewing parties with online chat. Microsoft revealed in a press release that the service will be based on Silverlight technology.

The company had announced Tuesday that Silverlight 4, the next iteration of its Flash rival, will include PlayReady DRM, making it possible for retailers and movie studios to provide digital movie copies with much the same rich interactive experience as offered by DVD and Blu-ray titles. Microsoft also said that it does plan to offer its virtual DVD service elsewhere.

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